F&G Annuities & Life, Inc. Barclays 24th Annual Global Financial Services Conference

Yeah. Absolutely. I'd love to. First of all, just thank you for having us. Thank you for the support. Yeah. While F&G has been around for a long time, F&G has been around since the 1950s, in many respects, the F&G that exists today has had about an 8 or 9-year journey. In that time, we've grown very significantly from being predominantly a fixed indexed annuity distributed through independent distribution to being much more multifaceted across life and annuities. But I would argue that we were, yeah, we were largely a spread business. We hadn't evolved to where we were doing segment reporting. But this year-end, we did at least take a step in that direction by highlighting that, for example, back in 2022, we were virtually all spread.

By 2025, 15% of our earnings had come from fee businesses on the life side, on the reinsurance side, and on our own distribution ownership business. That just by virtue of the 3-year plan, 2025. By 2028, we expect it to be at 25%, which I think is very achievable. Obviously, you have a lot of levers where you can make that number bigger or smaller as you see fit. At the same time, it's been pretty fast-growing. Over the last handful of years, we've gone from about $25 billion of gross AUM to $75, about $55 of that retained. Yeah, so it's been fast growth. It's been an AUM focus with an ROA expansion story that we largely achieved and an ROE story that's continuing to evolve.

So it differs at the moment by product to some extent, by distribution opportunity as well. Maybe running through them, the FIA space, I would argue remains very healthy. We had a particularly strong first half of the year. We were up about 4%. I think the industry was down 5%. But I would say that broadly speaking, it is an area of the market that has done well pretty consistently. And perhaps in any individual quarter, you might see a bit of a change in league tables about how somebody, or even over the course of a year, how it may have moved around. But we just had this conversation with the board, actually, when we were looking back over 5 years. 70% of the business is written by 10 companies, and it is basically everybody's. It all shakes out. Everybody's basically done the same over the last 5 years.

I would say everybody's up 15%-20%. But it is a little tight. I would say that 2025 was a little less profitable than 2024. I would say 2026 so far has been somewhere in the middle. Switching over to RILAs. We were newer to the buffered annuity space. For us, it has been a great growth but off a small base. So we are very happy with everything in that space right now. In fact, we have written as much RILA already this year that we wrote all of last year. But admittedly, off a smaller base. So that has been pretty good. Switching over. Maybe staying within on the MYGA space, we have de-emphasized that pretty significantly for us, and that has just been a capital allocation return trade for us.

It ebbs and flows, second quarter of last year, we wrote a lot because it was a great spread opportunity and a great reinsurance opportunity. We reinsured 90% of our MYGAs. But at the moment, we are seeing better opportunities elsewhere. And in fact, as you know, we did probably an outsized level of buybacks for our company in the second quarter, and it was capital that we did not use on MYGAs, that we used on the buybacks. So we see the MYGA space as remaining very competitive. So we are just not seeing the returns there to write very much of it at the moment. We are still writing some. We are still in the space, and we will ratchet that up and down as the opportunities arise. On the life side, still seeing a lot of attractiveness with the IUL space.

Again, a lot of how we distribute through the independent distribution organizations, we are really focused on Middle America and multicultural America. That has been strong. We are number 6 in FIA, number 6 in IUL, but that is on premium dollars. We are actually number 3 on policies. We are selling on average smaller face amount policies, probably a little under $250,000. That is maybe $1,200 to $1,500 a year in annual premium. We are seeing smaller dollars from a premium point of view. Middle America is less able to afford a policy in 2026 than they could in 2025. That is interesting. Similar policy count, but dollars are down a little bit. On the pension side, the PRT space is interesting. You tend to see less in the first half of the year. You see more in the third quarter, more again in the fourth.

We wrote $500 million or $600 million in the first half of the year, which was probably about what we thought we would do. I would say we kind of got our fair share. We end up writing about 1 in every 4 or 5 of the opportunities we bid on. But that was pretty modest. Maybe from an overall industry, I think we see some of the bigger carriers coming on market a little bit. We do not participate in the above billion-dollar space. We are more in the $100 million to $600 million-$700 million. Certainly some of that competitiveness, I would say we have seen some of the big mutuals come back to that space that we have not seen for a while. Good space, but yeah, definitely increased competition there. We will see how the second half of the year plays out.

These pension plans are much more well-funded than they had been previously as well. So it might not be quite as robust as it has been in the last couple of years. It is core for us, but we are not trying to grow that the way that we are. On life and FIA, we would like to write at least as much as we did in the equivalent quarter of the prior year.

Yeah. On PRT, we are trying to write roughly the same, call it $1 billion-$1.5 billion a year, given the size of our balance sheet.

Got it. The last piece, just FABN type stuff, that was very good late last year and the beginning of 2026.

Just private credit concerns and other things have capped that out. So we have stayed on the sidelines there a little bit.